CBN further boosts forex market with $195 million

The Central Bank of Nigeria (CBN), yesterday, further intervened in the foreign exchange market with a $195 million auction to its three segments.The move followed a major stride last week, where it sold $462.3 million, made up of $267.3 million for the Retail Secondary Market Intervention Sales (SMIS) while $100 million went to wholesale interventions; $50 million for the Small and Medium Enterprises (SMEs) forex window and $45 million going to invisible items – Business/Personal Travel Allowances, tuition and medical fees.

The latest aid comes barely three days after reports from the apex bank indicated that it had grown the country’s reserves back to $31 billion, with rates now trending at N364/$ for the parallel market; N362 at the BDC segment while the investors and exporters’ window stays at N363.

The Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, reaffirmed the bank’s commitment to sustain liquidity in the market to ensure that genuine requests are met as well as improve flexibility in the market.

He said the leadership of the apex bank was upbeat about the positive impact its foreign exchange management was having on the manufacturing and agriculture sectors as well as the general economic activities nationwide.He also reiterated the CBN Governor’s desire to achieve stability and ultimately ensure convergence of rates in the market.